Time until the Ethereum London Update Goes Live:
The long awaited Ethereum London Update Goes live in less than 2 weeks. The scheduled update includes the following Ethereum Improvement Protocols (EIPs): 1559, 3198, 3529, 3541, and 3554. In Short, this protocol update should help declutter/decongest the network and pave the way for future improvements.
If you’re curious about the specific of each EIP, I go over them in layman’s terms in the article (below the countdown timer).
The current block is #12871403 and the Ethereum London update is scheduled to go live at block #12965000.
That means that we have only 93597 blocks to go.
What The Ethereum London Update Will Contain
The London Protocol Update includes 5 Ethereum Improvement Proposals (EIPs):
Details of EIP 1559
EIP 1559 consists of 2 components:
- Firstly, EIP1559 adds a base fee to every transaction on the Ethereum blockchain. This should help stabilize & standardize the cost of fees by getting rid of the “first price auction” system currently being used.
- Secondly, EIP1559 changes the fee payout. This portion will burn fees instead of distributing them to miners. Consequently, this should increase the price of ETH as supply becomes more limited.
Details of EIP 3198
The EIP 3198 portion of the London Update for Ethereum addresses smart contract fees. In Short, EIP9138 will stabilize (and lower) the fees that smart contracts (like decentralized exchanges) are paying.
Details of EIP 3529
A lesser known portion of the Ethereum London Update is EIP 3529. EIP3529 aims to “declutter” the network by removing or reducing gas refunds.
In Short, this will allow smart contracts to more accurately estimate gas fee costs, making the network less prone to congestion.
Details of EIP 3541
Perhaps the most misunderstood (or under-covered) part of the Ethereum London Update is EIP 3541. EIP3541 reserves space within the network for future projects – allowing for new types of smart contracts.
Most importantly, this will allow the developers to add new functionality in the future without breaking the “Ethereum Virtual Machine”.
Details of EIP 3554
EIP 3554 addresses the bit of code that’s known as a “Difficulty Bomb” which increases the time between block creation. To address this issue of increasing block time, EIP3554 will delay the difficulty bomb until December of 2021.
Fun fact – this bit of code was put [in] in 2015 to incentivize the Ethereum developers to implement Ethereum 2.0 Sooner rather than later. The Ethereum 2.0 Update will switch Ethereum from Proof of Work [PoW] to Proof of Stake [PoS].
Wrap up of the Ethereum London Update
To summarize, the goal of the London Update is to;
- Standardize the fees by implementing a base fee.
- Tackle network congestion/lag.
- Allow for new types of smart contracts.
- Slow down the rate at which “mining difficulty” increases – also slowing down the rate between block creation.
- Increase the price of Ethereum (ETH and ERC20 Tokens) by burning a portion of the transaction fees.
However, if miners disagree with the updates, they could/might continue running the old version of the software. This would subsequently result in a hard fork of the current Ethereum Blockchain.
I imagine that a hard fork of the current Ethereum blockchain would definitely create some confusion for current holders…
I hope that everything goes smoothly and successfully.